The world's second-largest food and beverage company says it will reduce the saturated fat, sodium, and sugar in its products to make them more nutritious.
Pepsi says it will cut up to one-quarter of the unhealthy ingredients by 2020, and improve labels to give consumers clearer information on what they are eating.
Several other major processed food manufacturers – Kraft, ConAgra, and Campbell Soup – have also announced cuts in sodium.
Last week Pepsi said it would continue a program to take its high-calorie soft-drinks out of schools and replace them with less-fattening alternatives.
The action by various companies comes as First Lady Michelle Obama has been campaigning for healthier foods and more physical activities in schools to fight childhood obesity.
Some information for this report provided by AP.